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Mixed-Use Ancillary Rooms Connected to a Home Office Not Tax-Deductible

In its ruling of 17 February 2016 (Az. X R 26/13), the Bundesfinanzhof (BFH) held that expenses for rooms of the household which are also used to a significant extent for private purposes cannot be deducted, even if

1 min readUpdated: 2016-08-26Recommended

The Bundesfinanzhof (BFH) ruled on 17 February 2016 (Az. X R 26/13) that expenses for rooms of the household which are also used to a significant extent for private purposes cannot be deducted as business expenses or income-related expenses, even if a qualifying home office (häusliches Arbeitszimmer) exists.

Such mixed-use rooms include, for example, the kitchen, bathroom and hallway.

Frequently asked questions

Frequently asked questions

  • Are costs for kitchen, bathroom and hallway deductible as part of a home office?

    No. In its ruling of 17 February 2016 (Az. X R 26/13), the BFH held that expenses for rooms also used to a significant extent for private purposes are not deductible as business expenses or income-related expenses. This applies even if the household includes a home office that is recognised for tax purposes.

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  • What are mixed-use ancillary rooms under BFH case law?

    Mixed-use ancillary rooms are rooms used both for business or professional purposes and to a substantial extent for private purposes. Typical examples include the kitchen, bathroom, and hallway. Since these rooms primarily serve private living needs, they are not tax-deductible.

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  • Can a proportional deduction be claimed for rooms used partly for private purposes when a home office already exists?

    No, a proportional deduction is not permitted. The BFH has clarified that substantial private use entirely precludes the deduction as business expenses or income-related expenses. Splitting the costs according to usage shares is also ruled out.

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  • What is the case number of the BFH ruling on the deductibility of mixed-use ancillary rooms?

    The relevant ruling by the Bundesfinanzhof (BFH) is dated 17.02.2016 and bears the case number X R 26/13. It clarifies the tax treatment of mixed-use rooms in connection with a home office.

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